What Are Fractional Shares? [Investing in Stock Slices]

This new investing phenomenon that emerged is investing in fractional shares, which has made stock investing more affordable and allows anyone to become an investor.

What Are Fractional Shares?

Fractional shares are small pieces of whole shares of a stock or ETF. These shares can cost as little as $1 depending on the brokerage, but most shares at minimum can be bought with a few dollars.

Do Fractional Shares Pay Dividends?

Fractional shares can and do pay dividends just like regular shares of stocks or ETFs, but only if the stock you buy actually pays dividends. Not all stocks or ETFs offer dividends so if your strategy is to receive recurring payouts, make sure you research the companies you want to invest in first. 

How Do Fractional Shares Work?

Fractional shares work by dividing those shares into smaller parts, which means you can now pick exactly how much you wish to put into company stock. 

How Do Fractional Shares Work?

Fractional shares also allow you to do dollar-cost averaging; contributing a specific amount every month to your investments. Since you don’t need to save up in order to buy an individual stock, you can contribute as much as you want.

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